RBS's Coutts Sets Aside Funds for Customer Compensation

Some Customers May Have Been Sold Unsuitable Investments

LONDON—Royal Bank of Scotland Group PLC's Coutts & Co has put aside £110 million ($182.46 million) to cover potential payouts to U.K. customers who may have been sold unsuitable investments, according to a person familiar with the matter.

The 300 year-old private bank, which is part of RBS's wealth arm, is undertaking a review of thousands of products that may have been wrongfully sold to high net worth clients. In 2013 RBS took provisions of over £206 million to cover issues in its private banking division. On Friday...